Use the following information to answer the question below

Opening stock---------2,300
Purchases-------------11,874
Sales--------------------18,600
Closing stock-----------3,600
Cost of goods sold---11,500

The percentage of gross profit to sales is

A.

61.82%

B.

38.17%

C.

28.49%

D.

14.25%

Correct answer is B

Gross profit  = sales - cost of goods sold

= 18,600 - 11,500 = 7,100

Percentage = 7,100/18,600 x 100

= 38.17%